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Supreme Court of India 2019-02-28 remanded

Vidya Drolia & Ors vs Durga Trading Corporation

Bench: 2 — R.F. Nariman

In Brief

A tenant disputed eviction proceedings initiated by a landlord under a tenancy agreement containing an arbitration clause. The High Court appointed an arbitrator after dismissing the tenant's objections to arbitrability. The Supreme Court held that disputes under the Transfer of Property Act regarding lease determination (including issues of forfeiture and relief provisions) are arbitrable because the Act contains no express or implied exclusion. The Court distinguished the earlier judgment in Himangni Enterprises, marking it for reconsideration by a larger Bench, and allowed the arbitration to proceed, though the resulting award cannot be executed without the Court's approval.

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Arbitration Landlord and Tenant Transfer of Property Act Arbitrability Civil Procedure

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